StackCommerce buys Joyus to focus on video and expand into fashion, shopping and beauty

StackCommerce, which sells articles sponsored by brands and published on websites, has acquired the online video marketing company Joyus in an all cash transaction to expand its advertising footprint in media targeting women and work more with online video.

The media market for fashion, women’s health, and shopping is a new one for StackCommerce which has worked closely with websites like Mashable, Engadget and others. The company’s service is similar to Wirecutter, offering brands a chance to sell their gear on websites with sponsored reviews.

Now, with Joyus, which started life as an online Home Shopping Network and pivoted into providing video reviews for websites like Aol (which is owned by Oath, which also owns me and my words) or Refinery29, StackCommerce can go after publishers that focus on health, fashion, beauty, and design.

While Joyus had raised $67 million in financing from investors including Accel Partners, Marker, Steamboat Ventures, InterWest Partners, and TimeWarner Investments, StackCommerce took a much more capital efficient approach to its growth.

The Los Angeles-based startup had raised a minuscule $800,000 in seed funding back in 2012 (it was the company’s only outside investment). Backers in that round included 500 Startups, Amplify.LA, Draper Associates, EchoVC Partners, Paige Craig, Tim Draper, and Wavemaker Partners.

Terms of the acquisition were undisclosed, but a person familiar with the transaction said it was less than $50 million.

As a result of the acquisition, Joyus’ team is getting cut, according to a person with knowledge of the deal. Select team members will be joining StackCommerce in specific roles that have yet to be determined the person said.

While this is StackCommerce’s first acquisition, it likely won’t be the company’s last. The company, which is working with over 750 publishers today, will likely want to expand its suite of monetization tools to include data targeting and personalization and subscription-based services.

From its humble beginnings in Los Angeles, StackCommerce has grown to employ 65 people form its headquarters in Venice. The company rolled out two new offerings earlier this year including a Brand Studio product that lets publishers make on-demand advertising copy using the company’s editorial and video resources, and a feature called Momentum which distributes the company’s white-labeled reviews and advertisements across different social media properties.

Featured Image: Photo by Brian Ach/Getty Images for Wired/Getty Images